I’m not a complete n00b at this biz, but I’m not the last word, either. That said, I am sitting on about $50K - $60K cash. I want to invest it in some property, but here’s the fly in the ointment. At least, I think it is. . .
While I understand the logic and value of a buy and hold strategy these days with real estate, my preference right now is to buy and sell for a quick profit.
So my question is, in today’s economic climate is this realistic? I’m in Florida, but I am willing to invest anywhere in the country. Maybe buy an inexpensive property somewhere for cash, then quickly resell it for a $10K or so profit.
Realistic, or the stuff of dreams?
Fran, this is the best time to buy and hold and/or flip. With the foreclosure glut and incredible loan rates, distressed sellers including banks, are giving great discounts. There’s nothing but plenty of opportunity out there. You just have to make sure that you’re well informed and that you make an educated decision when going into a project, wether it be short or long term.
I hope you received my message…
I did. Thank you.
Don’t waste your time chasing a $10,000 deal. If you have to lower the price on the resell end, you might end up at a break-even, which is a lost. Buying single homes to hold is not the way to go right now. If you want to hold property, look at buying multi-units because they bring in monthly cash-flow to pay your mortgage. And multi-units increase in value every time you raise rents unlike SFH. You have several people paying your mortgage versus one. Now I would suggest you buy, fix and resell especially in today’s market. You should be able to take your $60,000 to $1 million, with a monthly cash-flow of $10,000-$25,000-serious retirement living. You mentioned you’d invest anywhere. Well in Washington, DC there is a goldmine. For example. There was a condo that could be purchased for $275,000 and needs about $40,000 to make it like new. It could easily resell for $575,000 quickly. You do the math. This is real estate investing 101. The lenders I deal with would loan you the $275,000 and you would need to come up with the rehab money-$40,000. But look at your profit margin, over $200,000. Four or five of these and then you start looking to purchase one maybe two 50-60 unit apartment building that will put up to $25,000/month in your pocket forever. This is Professional Real Estate Investing. First you need a plan, a plan to get from A to Z. Getting to Z could be that you want to earn $10,000 or your Z could be to earn $1 million and a hefty monthly cashflow to retire on comfortbly. I can show you how!
This is the market, unfortunately, that Real Estate Pros dream of, because you can buy inventory dirt cheap. People are still buying homes that are priced right. So you must first buy right, because you make your profit when you buy, not when you sell. For the regular consumer/homeowner its a nightmare as they’ve seen the value of their homes fall. As Warren Buffet says, he watching where the puck is going, not where it has been. Ask Donald Trump is now a good time to become wealthy investing in real estate and he will tell you 10,000 times yes, its the best time. But first develope a solid plan, do your due-diligence and go for it.
Much Success To You!
OK good, didn’t know if you did, so I tried to state what I did again.
Much Success!
I actually deal with clients like you in my local area except mine only lend and we split profits. No cash flow thing become a millionaire stuff. We buy them at about 40k and resell in 3 months for 70k to retail buyers. We have about 4-5 at a time like this. I’d stick with someone who wants to make money like you do and you’ll be fine. PM me if you have any questions so that you can do the same in your area. To your success.